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July 12, 2021

HSBC to revamp top management to shed ‘hierarchical culture’

By Verdict Staff

HSBC is reportedly preparing to revamp its senior management structure as part of a streamlining drive to shed ‘hierarchical culture’.

The British lender is set to alter the ‘leadership bands’ of hundreds of its managers in the coming months, Bloomberg News reported, citing an internal memo from HSBC human resources chief Elaine Arden.

According to the memo, the bank identified its current management system complicated compared with its peers and inconsistency in how seniority of the roles are determined.

Starting this September, HSBC will combine its top four bands into three.

HSBC said in an emailed statement to the news agency: “Following a thorough review, we are creating a simpler leadership framework ensuring clarity on scope and accountability to help accelerate our transformation and drive growth.

“There will be no change to contractual employee benefits as a result of this change.”

Under its current management structure, HSBC ranks its employees under ‘global career band’ (GCB).

Group managing directors, group general managers and executive are ranked as GCB1 and GCB2.

Following the streamlining, the earlier classes will be replaced by group executives, general managers and managing directors.

The changes would not have any effect on the pay and other condition.

However, there are concerns that the move may lead to some employees being effectively demoted, people familiar with the matter divulged to the news agency.

HSBC is currently restructuring its operations globally to prioritise its focus on Asian business, especially its wealth management arm.

The move is expected to result in thousands of layoffs.

Last week, HSBC Asset Management formed a Sustainability Office and reorganised its Responsible Investment team as part of strengthening its sustainability proposition.

Last month, the unit combined all of its existing alternatives capabilities under a single business unit, dubbed HSBC Alternatives.

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